HBM Ramp and Demand
Q: Is improved HBM supply driving better DRAM shipments?
A: Yes, Micron is seeing strong yields in HBM, achieving several hundred million dollars in revenue in fiscal Q4, with gross margins higher than other DRAM products. " This strong HBM supply contributes to an improved DRAM shipment outlook, supporting a multibillion-dollar business opportunity in fiscal '25. "

HBM Competitive Position
Q: Can competitors enter the HBM market and impact Micron?
A: While all three major DRAM suppliers are expected to supply HBM eventually, Micron aims to have the best HBM with superior performance, features, and 20% lower power consumption in its 12-high product compared to an 8-high product from the nearest competitor. " High demand and limited supply ramp in '25 support Micron's confidence in maintaining a strong market position. "

AI Server Growth
Q: What are assumptions for server unit growth in fiscal '25?
A: Micron expects modest growth in general-purpose servers and strong growth in AI servers this year and next. " High-capacity 128GB DIMMs are used predominantly in AI servers for training and inferencing, and this trend is expected to continue. "

CapEx Focus on HBM
Q: How is CapEx being allocated in fiscal '25?
A: CapEx will be up meaningfully in fiscal '25, with $3.5 billion in Q1 and an expected full-year estimate of mid-30s percent of revenue. " The overwhelming majority is to support HBM CapEx, facility construction, back-end, and R&D, while maintaining discipline on wafer fab equipment spending. "

Inventory Expectations
Q: Will fiscal Q4 be the peak inventory level?
A: Inventory days are expected to improve through fiscal '25, particularly in the second half as volumes increase. " While dollar inventory levels may not change significantly due to business growth, days of inventory outstanding should see improvement. "

China Capacity Impact
Q: Is China capacity causing any disruption?
A: China supply exists but is limited to lower-performance products like DDR4 and LP4, mainly for China-headquartered customers. " Micron's focus on high-profit segments like HBM, high-capacity DIMMs, and data center SSDs reduces exposure to China-related market pressures over time. "

Visibility and Customer Contracts
Q: What visibility does Micron have into customer demand?
A: Micron has long-term agreements for standard DRAM and NAND providing quarterly visibility, and for HBM, agreements have pricing concluded through calendar '24 and '25. " Deep R&D engagements with customers on multiyear roadmaps bolster confidence in leadership for future HBM products. "

Operating Margin Outlook
Q: Will operating margins expand throughout '25?
A: Micron expects a healthy supply-demand balance and a constructive environment to improve profitability through fiscal '25. " Volumes are anticipated to be second-half weighted, supported by increasing mix of HBM, high-capacity DIMMs, and data center SSDs. "

HBM Yield and Manufacturing
Q: How do Micron's HBM yields compare to competitors?
A: Micron has made significant investments in smart manufacturing and AI, leading to faster and more predictable yield ramps. " While not commenting on competitors, Micron feels strong about capabilities in both front-end and back-end yields, supporting the HBM opportunity ahead. "

Seasonality and Demand
Q: How will seasonality affect fiscal '25?
A: Strong data center demand is expected in the first half of fiscal '25, with AI-related server demand continuing throughout the year. " Second-half volumes are anticipated to be higher, with benefits from higher-margin data center products, but Q2 may see typical seasonal weakness. "